FSMA updated the blacklist of unlicensed crypto exchanges
FSMA updated the blacklist of unlicensed crypto exchanges
The Belgian regulator FSMA (Financial Services and Markets Authority) has compiled a list of financial companies offering services in the Forex, CFDs, and crypto markets that do not have a license and operate illegally. The blacklist includes 38 companies.
According to the statement released by the FSMA on Monday, June 5, the unlicensed platforms spread their influence through advertisements in messengers and social networks, attracting users with the possibility of fast profits and quick wealth.
According to Finance Magnates, the FSMA has monitored numerous companies and their websites and found that a significant number of them are offering services to retail clients without a regulatory license to do so.
"These companies are very aggressive with intrusive advertising. They assure clients that they are licensed by some sort of financial regulator," the FSMA said in a written statement.
It was also noted that scammers often offer users remote access to manage their PCs, make money transfers, and manage financial transactions on their behalf.
A total of 38 unlicensed platforms, including Assets-Access, BingX, A-trade International, Common Investments, Bitelitgroup, Bitradercode, and many others, were added to the complete list of fraudulent organizations.
The Belgian regulator also stressed that it is important to take the choice of company seriously. Checks should include the exact name of the company, the country of incorporation, its offices, compliance with the name of the website, and the license number. If a company cannot be clearly identified, it should not be trusted.
The FSMA of Belgium constantly monitors financial companies and updates its warning list. You can follow the appearance of new companies on the blacklist on the FSMA's official website. Recently, the regulator uncovered a clone of brokerage firm Webull and 20 other platforms, and late last year, the FSMA published a list of 30 fraudulent websites, including a clone of CoinDesk.
Scammers often use a similar name and logo to legitimate companies and even the financial regulator itself to deceive consumers. There have been documented cases of scammers posing as employees of the regulator and contacting victims on its behalf, for example, promising to compensate losses for a fee or percentage of losses.
The FSMA also warned that scammers often send emails, including those purporting to be from the regulator. Users who receive emails from suspicious email addresses were advised not to communicate with such subscribers and to block them.
The FSMA was not the only regulator concerned about scammers impersonating them. CySEC (Cyprus Securities and Exchange Commission) and other regulators in the U.S., Japan, and New Zealand have also reported discoveries of fraudulent companies impersonating government officials.
Earlier, we reported that Singapore is introducing new requirements for cryptocurrencies.
